Debate on “ISE Economic Talks: “Trumponomics”
First debate of the Project “ISE Economic Talks” by the International School of Economics of UNEC has been held on March 2.
The most actual topic of the global agenda “Trumponomics” was discussed within the first meeting of UNEC’s new economic platform “ISE Economic Talks”. Head of the International School of Economics Anar Rzayev made a speech about the theme. Commenting on Trump’s “revolutions”, A.Rzayev characterized them as an internal- political establishment and media inside the elites and the revolution of the US oligarchy, as well as tax, investments, fiscal energy, anti-globalism-populism, protectionism and xenophobia.
A.Rzayev said that stimulation of economic growth with government spending will increase budget deficit. Infrastructural plans will lead to increase the interest rate of the FRS. This will increase the cost of borrowing and prevent the growth of GDP. And the participants of “ISE Economic Talks” exchanged their views on the topic the US needs new industrialization policy and what happened to post-industrial paradigm.
It was discussed that Trump’s fiscal expansion policy is unlikely to be able to overcome the actual difference between the potential GDP and the real GDP. Interest rates will increase in the US. This will prevent domestic investments, but may change the direction of global capital flows. The US protectionism will result with the expansion of the difference between the internal tax base and income and preventing development of global economy, rather than by purchasing jobs in the international labor market. Increasing the interest rates will create conditions for “return” of monetarism again.
The aim of the project “ISE Economic Talks” is bring UNEC instructors, students and research fellows together and organize debates with them. The most urgent economic issues and problems of the global economy and the country will be discussed within the project. At the same time, “Debate Day” of the bestseller economic books will be arranged. The topics of the discussions to be held twice a month will be chosen by voting. New directions of discussions will be defined in accordance with the proposals. Head of “ISE Economic Talks” of UNEC is an instructor of the Department of “International Economics Tahmasib Alizade.